Congress Faces ACA Subsidy Expiration and Appropriations Challenges in Final 2025 Session
Congress is facing a critical deadline with Affordable Care Act (ACA) tax subsidies set to expire on December 31, 2025, which threatens to cause significant increases in health insurance premiums for millions of Americans.
Despite bipartisan commitments to address this issue, a compromise that can pass both chambers appears unlikely within the limited legislative calendar available before Congress recesses on December 19. Senate Democrats and House moderates continue to push for an extension of these subsidies, while Republicans are insisting on reforms, such as income caps and fraud prevention measures, as prerequisites for any extension. This policy impasse reflects broader partisan divides over health care affordability and ACA reforms.
In addition to ACA subsidy negotiations, Congress is navigating the complex appropriations process with nine major spending bills still pending before the January 30, 2026, expiration deadline. Appropriations Chair Tom Cole has indicated a preference for passing smaller, less controversial funding bills piecemeal before the holiday recess, aiming to avoid end-of-year pressure on lawmakers. However, conservative opposition to large spending packages remains a significant challenge to timely appropriations.
Beyond health care and appropriations, Congress must address other legislative priorities, including the National Defense Authorization Act and potential new rules affecting Congressional stock trading to enhance ethical standards. There is also ongoing Congressional scrutiny regarding the release of sensitive documents related to Jeffrey Epstein, though further floor action on this matter appears limited.
The legislative session concludes amid low morale and internal party challenges, including the upcoming resignation of Rep. Marjorie Taylor Greene, which will affect Speaker Mike Johnson’s narrow House majority. Additional retirements and intra-party tensions may complicate legislative efforts in 2026. Meanwhile, the Trump administration is advocating for a new reconciliation bill addressing contentious issues such as health care, which could further intensify political and legislative dynamics.
Looking ahead, the 2026 midterm elections represent a critical test for both parties, with Democrats leveraging recent state-level victories to challenge Republican positions on cost-of-living and Medicaid policies. As Congress prepares to adjourn for the holiday season, significant policy debates over ACA subsidies, government funding, and legislative ethical reforms will persist when lawmakers return.